CityJet’s disposal by Air France-KLM is under way, but what will happen after the Intro?

On 19-Dec-2013, Intro Aviation made a firm offer to Air France-KLM to acquire its loss-making regional subsidiary CityJet (including CityJet's subsidiary VLM). The deal is expected to close in 1Q2014 after consultation with employee representative bodies. According to the statement from Air France-KLM, the offer provides for "ongoing commercial co-operation with Air France as part of a new industrial plan".

A wholly owned subsidiary of Air France since 2000, CityJet acquired VLM in 2007 and fully integrated it into its activities in 2009 under the CityJet brand. CityJet is an Irish-registered carrier with its head office in Dublin, although its main base is London City Airport, and VLM is a Belgian company.

CityJet's biggest asset is its leading share of slots at the high yield LCY, which remains an LCC-free airport. Nevertheless, its perennial losses suggest a greater cost focus is required. Intro has a record of turning around under-performing carriers and then selling them. Does it already have an eye on its exit strategy?